Shippers Don't See China's Boom Ending Soon
The soaring demand for oil and steel in the developing world, particularly in China, is a huge plus for the world's ocean-shipping industry, according to executives of shipping companies Genco and Teekay.
And neither executive expects a slump in development anytime soon.
Genco , a dry-bulk shipper, is heavily exposed to China, said Chief Financial Officer John Wobensmith.
"Their steel industry...has been growing 10 to 12 percent year-on-year," he told CNBC's "Squawk Box." "Iron ore going in...is about 30 percent of our business."
Although some of China's recent development is tied to the upcoming Olympic games in Beijing, the growth shouldn't stop when the games are over, Wobensmith said. He expects another upward boom to occur after the Olympics due to the growth of Chinese cities, and the infrastructure they need.
China's growth is a significant factor in the growth of the entire shipping industry, he said.
"The last real boom in dry-bulk shipping...was really post-World War II, with the...rebuilding of Europe and Japan," Wobensmith noted. "China is obviously a much larger piece of real estate than...Europe and Japan."
China's boom also is helping growth at Teekay , which ships oil and liquidified natural gas, or LNG.
"I'm not sure why the oil prices are so high," Teekay Executive Vice President and Chief Strategy Officer Peter Evensen told CNBC. "If you look at it from our standpoint, there's plenty of oil out there, and our ships are moving it all."
And they're moving it over longer distances.
"The oil market is worldwide, but the real growth market is 'Chindia,'" he said. "The marginal barrel of oil is being produced in the Atlantic -- Angola, Russia, Brazil -- whereas you're finding the marginal barrel of oil is being consumed in China and India."
He even sees the situation as a net positive for his business.
"I think we make more when oil prices are higher," he said. "When the price of oil is high, then you don't find traders are beating us up so much over the rates."
The executives were in New York Wednesday to attend an annual shipping industry conference.